diff --git a/packages/react-aria-components/src/Tabs.tsx b/packages/react-aria-components/src/Tabs.tsx
index d2932620df5..3eac788458d 100644
--- a/packages/react-aria-components/src/Tabs.tsx
+++ b/packages/react-aria-components/src/Tabs.tsx
@@ -251,6 +251,44 @@ export interface TabPanelRenderProps {
 export const TabsContext = createContext<ContextValue<TabsProps, HTMLDivElement>>(null);
 export const TabListStateContext = createContext<TabListState<any> | null>(null);
 
+interface CSSPropertyDefinition {
+  name: string;
+  syntax: string;
+  inherits: boolean;
+  initialValue: string;
+}
+
+interface CSSWithRegisterProperty {
+  registerProperty: (definition: CSSPropertyDefinition) => void;
+}
+
+let supportsTabPanelSizePropertyRegistration = registerTabPanelSizeProperties();
+
+function registerTabPanelSizeProperties(): boolean {
+  if (
+    typeof CSS === 'undefined' ||
+    typeof (CSS as unknown as CSSWithRegisterProperty).registerProperty !== 'function'
+  ) {
+    return false;
+  }
+
+  let css = CSS as unknown as CSSWithRegisterProperty;
+  for (let name of ['--tab-panel-width', '--tab-panel-height']) {
+    try {
+      css.registerProperty({
+        name,
+        syntax: '*',
+        inherits: false,
+        initialValue: 'auto'
+      });
+    } catch {
+      continue;
+    }
+  }
+
+  return true;
+}
+
 /**
  * Tabs organize content into multiple sections and allow users to navigate between them.
  */
@@ -627,11 +665,20 @@ function TabPanelInner(
   let domProps = isSelected
     ? mergeProps(DOMProps, tabPanelProps, focusProps, renderProps)
     : mergeProps(DOMProps, renderProps);
+  let style = renderProps.style;
+  if (!supportsTabPanelSizePropertyRegistration) {
+    style = {
+      '--tab-panel-width': 'unset',
+      '--tab-panel-height': 'unset',
+      ...renderProps.style
+    } as React.CSSProperties;
+  }
 
   return (
     <dom.div
       {...domProps}
       ref={ref}
+      style={style}
       data-focused={isFocused || undefined}
       data-focus-visible={isFocusVisible || undefined}
       // @ts-ignore
diff --git a/packages/react-aria-components/stories/Tabs.stories.tsx b/packages/react-aria-components/stories/Tabs.stories.tsx
index 55c7930d2ad..3daa854a8ec 100644
--- a/packages/react-aria-components/stories/Tabs.stories.tsx
+++ b/packages/react-aria-components/stories/Tabs.stories.tsx
@@ -17,7 +17,7 @@ import {Orientation} from '@react-types/shared';
 import {OverlayArrow} from '../src/OverlayArrow';
 import React, {useState} from 'react';
 import {RouterProvider} from 'react-aria/private/utils/openLink';
-import {Tab, TabList, TabPanel, TabProps, Tabs} from '../src/Tabs';
+import {Tab, TabList, TabPanel, TabPanels, TabProps, Tabs} from '../src/Tabs';
 import {Tooltip, TooltipTrigger} from '../src/Tooltip';
 import './styles.css';
 
@@ -144,3 +144,39 @@ export const NestedTabs: TabsStory = () => (
     <TabPanel id="bar">Bar</TabPanel>
   </Tabs>
 );
+
+// With non-inheriting panel size variables, inner TabPanels size to their own content.
+// Without it, they inherit the outer TabPanels' pixel vars.
+export const NestedTabsSizeTransition: TabsStory = () => (
+  <Tabs>
+    <TabList aria-label="Outer tabs" style={{display: 'flex', gap: 8}}>
+      <CustomTab id="nested">Nested tabs</CustomTab>
+      <CustomTab id="large">Large panel</CustomTab>
+    </TabList>
+    <TabPanels className="animated-tabpanels">
+      <TabPanel id="nested">
+        <Tabs>
+          <TabList aria-label="Inner tabs" style={{display: 'flex', gap: 8}}>
+            <CustomTab id="one">One</CustomTab>
+            <CustomTab id="two">Two</CustomTab>
+          </TabList>
+          <TabPanels className="animated-tabpanels">
+            <TabPanel id="one">
+              <div style={{width: 140, padding: 8}}>One</div>
+            </TabPanel>
+            <TabPanel id="two">
+              <div style={{width: 180, padding: 8}}>
+                Two
+                <br />
+                Small inner panel
+              </div>
+            </TabPanel>
+          </TabPanels>
+        </Tabs>
+      </TabPanel>
+      <TabPanel id="large">
+        <div style={{width: 480, height: 240, padding: 8}}>Large outer panel</div>
+      </TabPanel>
+    </TabPanels>
+  </Tabs>
+);
diff --git a/packages/react-aria-components/stories/styles.css b/packages/react-aria-components/stories/styles.css
index 7f8b969fa90..f04fac00ff3 100644
--- a/packages/react-aria-components/stories/styles.css
+++ b/packages/react-aria-components/stories/styles.css
@@ -22,6 +22,14 @@
   }
 }
 
+:global(.animated-tabpanels) {
+  display: block;
+  overflow: hidden;
+  width: var(--tab-panel-width);
+  height: var(--tab-panel-height);
+  transition: width 300ms, height 300ms;
+}
+
 .my-modal {
   position: fixed;
   top: 0;
diff --git a/packages/react-aria-components/test/Tabs.test.js b/packages/react-aria-components/test/Tabs.test.js
index d5d34e78e07..9f248afd2b4 100644
--- a/packages/react-aria-components/test/Tabs.test.js
+++ b/packages/react-aria-components/test/Tabs.test.js
@@ -695,6 +695,52 @@ describe('Tabs', () => {
     expect(innerTabs[1]).toHaveTextContent('Two');
   });
 
+  it('falls back to resetting tab panel transition variables for nested tabpanels', async () => {
+    let {getByTestId} = render(
+      <Tabs>
+        <TabList aria-label="Outer tabs">
+          <Tab id="foo">Foo</Tab>
+          <Tab id="bar">Bar</Tab>
+        </TabList>
+        <TabPanels
+          data-testid="outer-tabpanels"
+          style={{
+            '--tab-panel-width': '320px',
+            '--tab-panel-height': '240px'
+          }}>
+          <TabPanel id="foo" data-testid="outer-tabpanel">
+            <Tabs>
+              <TabList aria-label="Inner tabs">
+                <Tab id="one">One</Tab>
+                <Tab id="two">Two</Tab>
+              </TabList>
+              <TabPanels data-testid="inner-tabpanels">
+                <TabPanel id="one">One</TabPanel>
+                <TabPanel id="two">Two</TabPanel>
+              </TabPanels>
+            </Tabs>
+          </TabPanel>
+          <TabPanel id="bar">Bar</TabPanel>
+        </TabPanels>
+      </Tabs>
+    );
+
+    // Wait a tick for MutationObserver in useHasTabbableChild to fire.
+    // This avoids React's "update not wrapped in act" warning.
+    await waitFor(() => Promise.resolve());
+
+    let outerTabPanels = getByTestId('outer-tabpanels');
+    let outerTabPanel = getByTestId('outer-tabpanel');
+    let innerTabPanels = getByTestId('inner-tabpanels');
+
+    expect(outerTabPanels.style.getPropertyValue('--tab-panel-width')).toBe('320px');
+    expect(outerTabPanels.style.getPropertyValue('--tab-panel-height')).toBe('240px');
+    expect(outerTabPanel.style.getPropertyValue('--tab-panel-width')).toBe('unset');
+    expect(outerTabPanel.style.getPropertyValue('--tab-panel-height')).toBe('unset');
+    expect(innerTabPanels.style.getPropertyValue('--tab-panel-width')).toBe('');
+    expect(innerTabPanels.style.getPropertyValue('--tab-panel-height')).toBe('');
+  });
+
   it('can add tabs and keep the current selected key', async () => {
     let onSelectionChange = jest.fn();
     function Example(props) {
@@ -829,6 +875,62 @@ describe('Tabs', () => {
     expect(tabPanels).toHaveStyle({width: '100px'});
   });
 
+  it('should allow tab panel styles to override fallback transition variable resets', () => {
+    let {getByTestId} = render(
+      <Tabs>
+        <TabList aria-label="test">
+          <Tab id="a">A</Tab>
+          <Tab id="b">B</Tab>
+        </TabList>
+        <TabPanels>
+          <TabPanel
+            id="a"
+            data-testid="tabpanel"
+            style={{
+              '--tab-panel-width': '50px',
+              '--tab-panel-height': '75px'
+            }}>
+            A
+          </TabPanel>
+          <TabPanel id="b">B</TabPanel>
+        </TabPanels>
+      </Tabs>
+    );
+
+    let tabPanel = getByTestId('tabpanel');
+    expect(tabPanel.style.getPropertyValue('--tab-panel-width')).toBe('50px');
+    expect(tabPanel.style.getPropertyValue('--tab-panel-height')).toBe('75px');
+  });
+
+  it('should merge fallback transition variable resets with style render props', () => {
+    let {getByTestId} = render(
+      <Tabs>
+        <TabList aria-label="test">
+          <Tab id="a">A</Tab>
+          <Tab id="b">B</Tab>
+        </TabList>
+        <TabPanels>
+          <TabPanel
+            id="a"
+            className={() => 'selected'}
+            data-testid="tabpanel"
+            style={() => ({
+              opacity: 1
+            })}>
+            A
+          </TabPanel>
+          <TabPanel id="b">B</TabPanel>
+        </TabPanels>
+      </Tabs>
+    );
+
+    let tabPanel = getByTestId('tabpanel');
+    expect(tabPanel).toHaveAttribute('class', 'selected');
+    expect(tabPanel.style.getPropertyValue('--tab-panel-width')).toBe('unset');
+    expect(tabPanel.style.getPropertyValue('--tab-panel-height')).toBe('unset');
+    expect(tabPanel).toHaveStyle({opacity: '1'});
+  });
+
   it('should detect block-size in transition for TabPanels', async () => {
     let originalGetComputedStyle = window.getComputedStyle;
     window.getComputedStyle = el => ({